A group of French and German economists has urged Europe to identify which industries to support in the face of Chinese competition and boldly abandon those where the battle had already been lost, such as the solar power sector.

The recommendations were presented in five memos to the Franco-German Council of Ministers at the request of the two governments during a council meeting on Friday. The memos cover trade with China, as well as defence, energy, economic growth and the labour market.

The economists advised Europe to protect sensitive sectors such as defence, space and robotics, while leaving mature industries open to cheap Chinese imports. They welcomed Chinese investment in critical technologies such as batteries, provided that technology is shared, according to a summary published by the Franco-German Council of Economic Experts.

Jean Pisani-Ferry, a French economist and co-author of the memos, pointed to solar panels as a clear example of an industry Europe should concede.

“Chinese industry is far ahead of everyone else and there’s no longer a solar panel industry in Europe,” he told French TV channel BFMTV Business last Friday.

“Ultimately, it’s not such a big deal because solar panels stay in place once installed. They do not create a dependence, unlike gas, which you need every day. Hence, it’s a technology in which we have to admit that we’ve lost the battle.”